Lendlease and Nippon Steel Kowa Real Estate (NSKRE) have entered their first-ever partnership to deliver a A$500m (€306m) waterfront build-to-rent (BTR) apartment development in Australia.

NSKRE will take a 40% equity share in the BTR venture. Lendlease will seek to bring in additional partners as the Dockland project in Melbourne progresses.

Australia is a new market for the Japanese developer of commercial and residential projects in its home market. In 2022, NSKRE acquired its first rental apartment complex in Georgia in the US.

Itaru Ishihara, managing director of international business Nippon Steel Kowa Real Estate, said: “NSKRE has always prioritised collaborating with reliable local partners when expanding our operations overseas.

“As we make our inaugural entry into the Australian market, we are delighted to partner with Lendlease, a company renowned for its outstanding achievements and significant presence in Australia.”

Tom Mackellar, CEO of development at Lendlease, said: “The launch of our first-ever partnership with NSKRE to deliver a new build-to-rent development on Melbourne’s waterfront represents a strategic opportunity to leverage our shared global expertise in this sector as we deliver Lendlease’s third build-to-rent project in Australia.”

Lendlease will develop, construct and act as the investment manager for the development, designed for 499 residences spanning 24 levels. Early works are underway with construction set to commence this year and due for completion in 2026.

Lendlease currently has around 2,700BTR apartments in delivery, in addition to an existing 2,800 managed apartments. Together, it brings Lendlease’s BTR portfolio to 5,500 apartments.

To read the latest IPE Real Assets magazine click here.

Topics